Charles Schwab results are in – and they’re down
Earnings season is truly upon us and there have been some stellar results announced- Just a few days ago JP Morgan Chase announced net income of $14.5 billion which is a jump of 67%. Unsurprisingly, CEO Jamie Dimon was pleased. “We reported another quarter of strong results, generating net income of $13.3 billion and an ROTCE of 23% after excluding a net after-tax gain of $1.8 billion relating to the First Republic transaction, as well as discretionary after-tax investment securities losses of $0.7 billion,” He said in a statement.
Move from Madison Avenue to Midtown’s 52nd street, and although there’s plenty of positive talk, the underlying message for the country’s 10th biggest bank is far less upbeat- Charles Schwab’s results are out and they’re not nearly as uplifting for Co-Chair & CEO Walt Bettinger.
Although the figures start with some good news – nearly 1 million new client accounts and $52 billion in core net new assets, by the time you get past all the many positives to CFO Peter Crawford’s first para and you can see that maybe things aren’t quite as rosy as they are across at JP Morgan Chase.
“While navigating significant near-term headwinds, we generated second quarter revenues of $4.7 billion, down 9% on a year-over-year basis,” he said. “ This top-line result was driven primarily by a temporary increase in the utilization of supplemental funding to facilitate client cash allocation decisions during the current rising rate cycle. Net interest revenue declined 10% from the prior year to $2.3 billion as the incorporation of higher cost liabilities brought our net interest margin down by 32 basis points sequentially to 1.87%.”
There is some good news in his message though – “We observed a continued and
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